Most Popular Lending Content
Is Free Checking for 50 & Older an ECOA Violation?
07/04/2005
We are in the process of implementing an automated overdraft protection service. As a courtesy, the Fair Lending folks at the FDIC spoke with us regarding "guidance" on this service. Specifically, they told us that if we have any checking products that are age-based (such as 50 years plus checking) that has a waived service charge that we are discriminating against all other accounts holders that have an account that is not aged base and has a service charge or a minimum balance requirement. The violation would fall under ECOA. We were told the only way that we would be in "guidance" would be if the aged based account was 62 years plus. We asked them to site specifically "where" in the Reg B or in the joint guidance that this is stated. Apparently this is very broad guidance. Has anyone else come up against this situation or been written-up in an exam for this? Any advise as to our next move?
Will HMDA Lead to Litigation?
07/04/2005
Will the expanded HMDA rules - now including interest rates - increase risk of class action ligitation for mortgage bankers?
Construction and End Loan and RESPA Query
07/04/2005
A mortgage lender faciliates a construction loan for a borrower and charges an origination fee to do so. The fee is shown on the HUD-1 if the mortgage lender closes the end loan. If an end loan is not closed the fee is never disclosed on a HUD-1. The construction lender allows the borrower to take a draw on the construction loan to pay the mortgage lender but pays the draw direct to the borrower who then pays the mortgage lender. Is this a violation of REPSA.
Disclosing the Flood Certification Fee
07/04/2005
I read briefly somewhere that the flood determination fee that we charge should be broken down. If our fee is $25.00 and the actual determination costs $15.00, we should list the $10.00 fee we make under pre-paid finance and the other $15.00 down under other finance charges. Is this the case?
POC Insurance on GFE for Home Equity Loan?
07/04/2005
Can you show insurance as "POC" on your GFE for a Home Equity Loan?